Natural Resources

Oil & Gas

In Newfoundland and Labrador, we have begun a new era of petroleum resource development in which the province is taking its place as an active participant in development projects. Through the negotiation of benefits agreements and the establishment of clear regulatory and royalty regimes, Newfoundland and Labrador has positioned itself to get a fairer return on its resources as we work with our partners on our existing and future developments.


This province’s onshore and offshore oil and gas resources are regulated by two different systems. Resource development onshore is regulated by the Petroleum and Natural Gas Act while offshore petroleum resources are jointly managed by the federal and provincial governments through the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB). The C-NLOPB manages the regulatory regime established by the Atlantic Accord in 1985 and the subsequent implementation legislation.

Benefits Agreements and Royalty Regimes

At present, the province has offshore Royalty Regulations in place; however, these are supplemented by specific royalty agreements with the operators of each current offshore oil development. For all offshore petroleum projects, benefits agreements are negotiated with project operators and provide the province with royalties, as well as employment commitments and targets, and industrial benefits.

In order to continue to attract new investment in the province’s petroleum development sector, the Government of Newfoundland and Labrador recognizes that it is essential to maintain clear and competitive regulatory and royalty regimes. To this end, Government has developed Offshore Royalty Regimes to provide potential operators with the fiscal terms required to assess project economics prior to exploration and development of the province’s oil and natural gas resources. The links below provide more information on the royalty regimes in place for each of the province’s existing offshore development projects, as well as  the generic royalty regimes that apply to future oil and gas developments.

Innovation and Business Development Fund


Royalty Regimes

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